Kossian v. American (California, 1967)

In February 1964, a fire damaged the Bakersfield Inn in California.

*Mr. Kossian = cleaner hired by the inn owner = "Kossian" = plaintiff

*The price agreed upon for the clean-up was $18,900. Kossian finished up the job in 2 months.

*Kossian wasn't paid, however, because the inn owner filed for bankruptcy

*American National Insurance Company = defendant = "American" = new inn owner because American held a deed of trust against the bankrupt inn owner

*

Kossian sued American demanding payment for his clean-up labor.

The trial court entered a summary judgment in favor of American.

Should 1 party [American] be indemnified twice for the same loss, once in labor & materials [of Kossian] & again in money [from other fire insurers to American], at the expense of the party [Kossian] who furnished the labor & materials?

Kossian argued that American was unjustly enriched. Kossian cited an equitable obligation to be fulfilled by American.

American argued that it had no contract with Kossian. American claimed not to know Kossian.

Certainly no. 1 party shouldn't be indemnified twice for the same loss, once in labor & materials + again in money, at the expense of the party who furnished the labor & materials (after the fire).

Kossian is entitled to be compensated out of the insurance money American received from other insurers.

Reversed. Kossian must be paid for his work